UK Housing: Annual price growth eases to 10.5% (July, 2021)

Annual house price growth in the UK eased to 10.5 percent in July of 2021 from a 17-year high of 13.4 percent in the previous month, as a deadline for a full tax break for home buyers passed.

Figures compare with market forecasts of 12.1 percent. On a monthly basis, housing prices were down 0.5 percent, reversing from a 0.7 percent rise in June and compared to market consensus of a 0.6 percent gain.

“Underlying demand is likely to remain solid in the near term.

“Consumer confidence has rebounded in recent months while borrowing costs remain low. This, combined with a lack of supply on the market, suggests continued support for house prices.

“But, as we look toward the end of the year, the outlook is harder to foresee. Activity will almost inevitably soften for a period after the stamp duty holiday expires at the end of September, given the incentive for people to bring forward their purchases to avoid the additional tax,” said Robert Gardner, the chief economist of Nationwide Building Society.

Source: Trading Economics